₹5 Lakh increased transaction limit on UPI

This week, the Reserve Bank of India (RBI) announced a significant increase in transaction limits for specific categories using the Unified Payment Interface (UPI).

Here's a quick breakdown:

Key points

Hospitals and educational institutions: The transaction limit has been raised from Rs 1 lakh to Rs 5 lakh.

Recurring payments: The cap for e-mandates has increased to Rs 1 lakh.

IPO and government bonds: The investment limit via UPI in IPOs and RBI Retail Direct Scheme for G-Secs has been raised to Rs 5 lakh.

How will this change affect your spending habits?

Greater convenience: Paying large bills for hospitals and educational institutions becomes significantly easier. No more breaking down payments or juggling multiple transactions.

Enhanced financial flexibility: Investing in IPOs and government bonds is now more accessible thanks to the increased limit, allowing for better diversification and wealth management.

Smoother recurring payments: With the e-mandate cap raised, managing recurring bills and subscriptions becomes more efficient and streamlined.